Barings BDC prices $300 million notes offering at 5.200% due 2028

CHARLOTTE - Barings BDC, Inc. (NYSE:BBDC), currently trading at $9.44 with a market capitalization of $993 million, has priced an underwritten public offering of $300 million in aggregate principal amount of notes due 2028, the company announced Monday. According to InvestingPro data, the company maintains an impressive 11.1% dividend yield and has raised its dividend for 5 consecutive years. The notes will carry an interest rate of 5.200% per year, payable semiannually, and will mature on September 15, 2028.

The offering is expected to close on September 15, 2025, subject to customary closing conditions. The notes may be redeemed in whole or in part at the company’s option at any time at par plus a make-whole premium, if applicable.

Barings BDC plans to initially use the net proceeds to repay indebtedness under its senior secured credit facility with ING Capital LLC, which was originally established in February 2019. The company may subsequently reborrow under the facility for general corporate purposes, including investing in portfolio companies in accordance with its investment objective.

J.P. Morgan Securities LLC, ING Financial Markets LLC, MUFG Securities Americas Inc., and SMBC Nikko Securities America, Inc. are serving as joint bookrunners for the offering, alongside several co-managers.

Barings BDC is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The company primarily invests in senior secured loans to middle-market companies across various industries.

The company’s investment activities are managed by Barings LLC, a global asset manager based in Charlotte, NC with over $456 billion in assets under management as of June 30, 2025, according to the press release statement. Trading at a P/E ratio of 9.9x, InvestingPro analysis reveals the company has maintained dividend payments for 19 consecutive years, though it faces challenges with short-term obligations exceeding liquid assets. For deeper insights into BBDC’s financial health and future prospects, investors can access the comprehensive Pro Research Report, which provides detailed analysis of this and 1,400+ other US equities.

In other recent news, Barings BDC Inc. reported its second-quarter 2025 earnings, exceeding analyst expectations with an earnings per share of $0.28, compared to the forecasted $0.258. The company also reported revenue of $74.4 million, surpassing the anticipated $66.19 million by 12.4%. These results highlight a notable performance for the quarter. Additionally, Keefe, Bruyette & Woods raised its price target for Barings BDC to $10.00 from $9.50, maintaining a Market Perform rating. The research firm attributed this adjustment to a one-time income boost, specifically from elevated dividend and fee income during the quarter. These recent developments reflect positively on Barings BDC’s financial performance and market outlook.

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